Session Summary

Session Number:286
Session ID:S128
Session Title:Dynamic, Complex Organizational Environments and Their Impacts
Short Title:Dynamic Environments
Session Type:Shared Interest Track Paper
Hotel:Hyatt East
Floor:LL2
Room:GndBall C(N)
Time:Tuesday, August 10, 1999 8:50 AM - 10:10 AM

Sponsors

ENT  (Robert Hisrich)rdh7@po.cwru.edu (216) 368-5354 
HCM  (Jacqueline Zinn)zinn@vm.temple.edu (215) 204-1684 
OMT  (Joseph Porac)j-porac@staff.uiuc.edu (217) 244-7969 
TIM  (Deborah Dougherty)doughert@business.rutgers.edu (973) 353-1664 

General People

Facilitator Schoonhoven, Claudia B. U. of California, Irvine kschoonh@uci.edu 603-646-3953 

Submissions

Changes in Organization Environments: A Longitudinal Study 
 Castrogiovanni, Gary J. U. of Tulsa gary-castrogiovanni@utulsa.edu (918)-631-2476 
 As we approach the new millennium, there is considerable reflection on the past and speculation about the future. A common view seems to be that organization environments are changing dramatically, and as a consequence, substantial changes in management practices are needed. Many have suggested that environments are becoming more complex or dynamic, and generally speaking, more turbulent. +
 Keywords: organization; environment; evolution
Dynamic Strategies: Emergent Journeys 
 Black, Janice A. New Mexico State U. janblack@nmsu.edu (505)-646-1201 
 Farias, Gerard F. Loyola U. gfarias@luc.edu (312) 915-6681 
 Today, many, but not all, business environments can be described as chaotic or complex systems characterized by non-linearity, aperiodicity and unpredictability (Johnson & Burton, 1994; D'Aveni, 1994; Ilinitch, D'Aveni, Lewin, 1996). We lack a well-defined conceptual framework that can explain the simultaneous presence of both equilibria oriented markets and attendant strategies, as well as, disequilibria oriented markets and strategies. This paper, using the Austrian Economics and Complexity literatures, proposes a model where entrepreneurial conation or volition to act plays a major role in the generation of market place complexity and dynamics. Enterprising activity generates information about here-to-fore undiscovered marketplaces. Other entrepreneurs with a honing activity orientation are attracted by the rent generating capacity of the new market place resulting in eventual erosion of its rent generating capacity as market norms are established and refined. Based on their conation preferences, entrepreneurs either choose to stay in the market or move on to other undiscovered markets. The expanded market model that uses complexity theory to explain the progression and inclusion of both equilibrium activities and disequilibrium activities is presented and the dynamic implications discussed.
 Keywords: Disequilibrium; Entrepreneurs; Dynamism
Using Systems Perspectives to Visualize Health Services Organizations 
 Jorgensen, Jane  Camas Inc. jorgenj@pearson.camas.org (541)-758-5088 
 Friedman, Leonard H. Oregon State U. friedmal@ccmail.orst.edu 541-737-2323 
 Health Service Organizations (HSO's) are inherently complex entities that function within a dynamic and rapidly changing environment. The industry consists of organizations linked together in complex networks, sharing the common goal of providing high quality health care to patients. The large number of stakeholders and their individual interests and agendas form a constantly changing environment. Health services researchers have used the term networks, or systems of health care providers to describe the connectivity between and among parts of the system. One important attribute of networks is that they are maintained in dynamic equilibrium. Stable systems can resist minor disruptive influences and are valuable because they enhance predictability and reduce environmental uncertainty. Using the metaphor of biological systems, we are able to visually depict how groups of organizations and stakeholders interact with each other and their environments. Using a methodology developed to qualitatively model complex systems, we illustrate the positive and negative feedback loops present in a health services system. Our expectation is that this technique of mapping a complex system has powerful implications for health services research.
 Keywords: Networks; Systems; Environment
Appropriative Capabilities: Facilitators and Impediments to Internal Competency Replication in Firms Operating in Dynamic Environments 
 Edelman, Linda F. Boston U. lfe@bu.edu 011 44 1932 865 344 
 The competitive dynamics of operating in regimes of rapid change have forced management scholars to fundamentally alter their models of competitive advantage. Where once competitive advantage was seen as a function of competitive positioning, now researchers argue that for firms in dynamic environments, competitive advantage is short-lived and based on organizational capabilities. Capabilities which allow firms to create new products and processes and respond to changing market circumstances are said to be dynamic. Dynamic capabilities are posited to be critical for firms operating in volatile environments. This paper presents a model of one dynamic capability, appropriative capability or the ability of firms to appropriate above normal rents from their existing competencies. Firm competencies are "sticky" leading them to be asymmetrically distributed throughout the firm. Firms that have the capability to replicate their strategic successes throughout the firm are said to be poised for future growth. This paper presents a model of barriers and facilitators to internal competency transfers for firms in dynamic environments. Utilizing a communications-transfer perspective, particular importance is placed on the context in which the competency replication occurs, an area previously under-explored. Propositions are advanced for future empirical investigation.
 Keywords: Dynamic Environments; Transfer; Appropriative Capabilities